‘Modern’ Phillips curve theories predict inflation is an integrated, or near integrated, process. However, inflation … shifting mean. If agents believe inflation is integrated as in the ‘modern’ theories then they are making systematic errors … concerning the statistical process of inflation. An alternative theory of the Phillips curve is developed that is consistent with …

‘Modern’ Phillips curve theories predict inflation is an integrated, or near integrated, process. However, inflation … shifting mean. If agents believe inflation is integrated as in the ‘modern’ theories then they are making systematic errors … concerning the statistical process of inflation. An alternative theory of the Phillips curve is developed that is consistent with …

inflation are co-breaking. We argue that the step-like development of inflation is in line with shocks and monetary policy that …% inflation was accomplished by introducing an inflation targeting regime. …

Phillips curve, the sum of coefficients associated with expected inflation is far beyond unity, whatever measure of expected … inflation rates is employed. Therefore, either the NAIRU concept is not applicable to Germany or, as it is our suggestion, one … estimates the unemployment rate that is compatible with a tolerable inflation rate of say 2 percent following roughly the …

This paper analyzes euro area and U.S. inflation dynamics since the beginning of the 1990s by estimating New Keynesian … hybrid Phillips curves with time-varying parameters. We measure inflation expectations by subjective forecasts from Consensus … results indicate that in both economic areas the inflation dynamics have steadily become more forward-looking over time. We …

15 years. Controlling for the most important other factors influencing the inflation rate, we estimate cointegrations and …